CC - Item 5E - Adoption of the City of Rosemead's FY 2018-19 Appropriation Limit E M E
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.A 9 ° ROSEMEAD CITY COUNCIL
STAFF REPORT
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TO: THE 1IONORABLE MAYOR AND CITY COUNCIL
FROM: GLORIA MOLLEDA, CITY MANAGER •KA.
DATE: JUNE 12, 2018
SUBJECT: ADOPTION OF THE CITY OF ROSEMEAD'S FISCAL YEAR 2018-19
APPROPRIATION LIMIT
SUMMARY
Article XIIIB of the Constitution of the State of California was enacted by a vote of the people as
Proposition 4 (the Gann Initiative) in November 1979. This law limits the level of most
appropriations from tax sources that the state and most local government entities are permitted to
make in any given year. It also requires that annually, each governmental unit calculate its
Appropriations Limit and adopt it by Resolution prior to the beginning of the fiscal year (FY)
under consideration.
The City of Rosemead's Appropriations Limit and Appropriations Subject to the Limit were both
calculated in accordance with guidelines issued by the League of California Cities. Utilization of
this approach facilitates the annual review requirement. The results of these calculations are:
Appropriations Limit for FY 2019 $48,342,393
Appropriations Subject to the Limit 18,151,428
Amount under Limit $30,190.965
STAFF RECOMMENDATION
That the City Council adopt Resolution No. 2018-21 approving the FY 2018-19 Appropriation
Limit according to Article XIII-B (Gann Initiative)of the Constitution of the State of California.
FISCAL IMPACT - None
STRATEGIC PLAN IMPACT -None
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
AGENDA ITEM NO. 5.E
City Council Meeting
June 11 2018
Page 2 of 2
Prepared by:
Pearl Lieu, Finance Director
Attachment: Resolution No. 2018-21
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Attachment A
Resolution No. 2018-21
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RESOLUTION NO.2018-21
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
CALIFORNIA, ADOPTING AN APPROPRIATION LIMIT FOR THE 2018-19
FISCAL YEAR
WHEREAS,Article XIII-B of the Constitution of the State of California provides that total
annual appropriations subject o limitation of the City shall not exceed the appropriations limit of the
City for the prior year as adjusted for annual adjustment factors; and
WHEREAS,Article XIII-B was modified in June, 1990 by the approval of Proposition 1 I I
and SB 88(Chapter 60/90)which revised the annual adjustment factors to be applied to the 1986-87
Appropriation Limit and each year thereafter; and
WHEREAS,the decision as to which factors:a)either the California Per Capita Income or
the percentage change in the local assessment roll due to local non-residential construction;b)either
the change in population in the City or County;must be done by a recorded vote of the City Council;
and
WHEREAS, the City Council wishes to set an appropriation limitation for the 2018-19
Fiscal Year on those appropriations subject to limitation under Article XIII-B; and
WHEREAS,the required computation to determine the City of Rosemead's Appropriation
Limit for fiscal year 2018-19 has been performed by the Finance Department and is on file with the
Finance Department, and available for public review,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD, DOES
HEREBY RESOLVE, DECLARE, DETERMINE.AND ORDER AS FOLLOWS:
SECTION 1. The City of Rosemead Appropriation Limit for Fiscal Year 2018-19 is
$48,342,393.
SECTION 2. The City Council selects the California per Capita Personal Income and the
greater of the county or city population increase as allowable inflation factors.
SECTION 3. This Appropriation Limit is subject to amendments, deletions and additions,
which may be provided pursuant to Article XIIIB of the California Constitution and legislation
implementing thereof. This limitation may be amended from time to time to reflect new or changed
information as such is encountered.
SECTION 4.The City Clerk shall certify to the adoption of this resolution and hereafter the
same shall be in full force and effect.
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PASSED,APPROVED, AND ADOPTED this 12th day of June,2018.
Steven Ly. Mayor
APPROVED AS TO FORM: ATTEST:
Rachel Richman, City Attorney Ericka Hernandez, City Clerk
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) §
CITY OF ROSEMEAD
I,Ericka Hernandez,City Clerk of the City Council of the City of Rosemead,California,do hereby
certify that the foregoing City Council Resolution, No. 2018-21, was duly adopted by the City
Council of the City of Rosemead, California, at a regular meeting thereof held on the 12th day of
June,2018, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Ericka Hernandez, City Clerk
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